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They may be trying to discourage having the item shipped with this price...and if someone wants to have it shipped, then the auction house makes a profit on it.
I don't understand the high reserve...what people run the bidding up to on ebay is usually indicative of its real value (or even more than its real value). If this seller is an auction house they should understand that. You can't make something valuable, just by putting a high price on it (although this strategy is often tried, I personally have never seen it work).
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